Generation Z, millennials dominate US streaming population | Media Analysis | Business
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Generation Z and millennials now make up nearly half (48%) of the overall generational composition in the US, with both bringing digital-native sensibilities to their media usage.

generation Z 17 july 2017According to the first-quarter 2017 Nielsen Total Audience Report, millennials — who are most likely in the beginning stages of their careers — have the lowest household incomes and are more likely to rent their home and live in urban areas. They are thus more likely to have access to multimedia devices (such as Apple TV and Google Chromecast) and subscription video-on-demand (SVOD) services than other generations, allowing them to connect to multiple forms of content.

Members of Generation Z, on the other hand, tend to live overwhelmingly in homes of three or more people, enabling them to benefit from the higher incomes of the family members they live with. This group has the highest penetration numbers for more expensive devices, such as enabled smart TVs (37%), video game consoles (73%) and tablets (78%) — gadgets that their well-established parents or other household members are able to give them access to.

Both cohorts also are more multicultural in their overall race/ethnic composition than previous generations. For instance, Generation Z holds the largest percentage of Hispanics and non-Hispanic blacks at 22% and 15%, respectively. Compare that to the Greatest Generation (those aged 71 and over), whose make-up is overwhelmingly non-Hispanic white at 78%, with 9% of its population non-Hispanic black and 8% Hispanic.

“While it’s long been known that age and life stage are instrumental in how media is consumed, the rise of Generation Z as the largest and most diverse generation presents a unique opportunity on the horizon for marketers,” Nielsen noted. “Couple this with the fact that new technology and forms of content are slowly being adopted by Americans of all ages and it becomes even more paramount to know how consumers are engaging with devices and platforms.”

Interestingly, the report also found that streaming penetration is growing among Generation Xers and Baby Boomers as well. For the latter group, penetration increased 29% year-over-year, while penetration among Generation X increased 23%. SVOD services are also growing in popularity with older generations, as 51% of baby boomers and 69% of Generation Xers use them (at least a 10% lift for both groups since last year), narrowing the gap between them and their younger counterparts — in which three out of four have SVOD access — for the same service.